An options trading strategy used by a bearish investor to maximize profit and minimize loss. When the trader expects the decline of a security or asset price, a bear put spread may be implemented by purchasing put options while also selling the same number of puts on the same asset within the same expiration date at a lower strike price. This means that the maximum profit is equivalent to the difference between the two strike prices (minus the cost of the options themselves).

# Bear Put Spread

## Market Terms

We don't know everything about the markets. We're just devoted to learners. Taken from those smarter than ourselves, here's how we define Bear Put Spread.